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context logic (NASDAQ:wish) Shares soared more than 40% after the company announced it would sell its Wish e-commerce platform to Qoo10 For $173 million in cash.
The company said the deal is valued at $6.50 per share. Following the transaction, ContextLogic will remain a publicly traded company with a net operating loss of $2.7 billion, which the buyer may be able to apply to its own net income.
WISH stock opened today at $6.42 per share, giving it a market cap of approximately $150 million.
destroy one's wishes
Qoo10 is based in Singapore and offers a site similar to Wish, offering boxed products in various product categories.
ContextLogic started as a software company in 2010, while Wish became a full-fledged e-commerce site in 2013. At its peak, Wish generated billions of dollars in annual revenue and went public in 2020. However, over time, this platform has been criticized for its sales purpose. Prohibits counterfeit goods and allows the purchase of products that are illegal in the buyer's home country. WISH stock has fallen over 99% over its lifetime.
What happened to Wish? Well, the e-commerce industry has moved on.sites like PDD Holdings (NASDAQ:P.D.D.) Temu now offers low prices and contingency through its supply chain management. This eliminated the margins of rival sites that had been purchasing finished products through distribution.
ContextLogic attempted to relaunch as a fintech under previous regime in 2021 block (New York Stock Exchange:square) An executive named Jacqueline Rees. I called the plan overzealous and issued a warning to investors.For small investors reddit also tried to promote WISH stock as a meme stock, but the short squeeze ultimately collapsed.
ContextLogic now plans to find a buyer for the tax losses and then return the capital to shareholders. The transaction is expected to close in the second quarter. ContextLogic will then continue to trade publicly, but under a new ticker symbol.
What happens next?
Once again, I was lucky that the fool and his money came together in the first place. The shark will swallow the loss of her ContextLogic, and there will be no hope left – save food for the fish.
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On the same day of issue, Dana Blankenhorn did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
